PetSmart, Inc. (NASDAQ: PETM) today reported net income of $29.5 million,
or $0.23 per diluted share, for the third fiscal quarter of 2007. That
compares with net income of $31.7 million, or $0.23 per diluted share, for
the third quarter of fiscal 2006.

Included in the company's third quarter 2007 results is $4.7 million of
pre-tax expense to exit the State Line Tack business. The net expense
includes accelerated depreciation of assets, severance and costs to
remerchandise the former equine sections of our stores. Also included in
the third quarter results is a pre-tax benefit of $5.5 million for the
recognition of gift card breakage.

"For the quarter, we weathered the top line impacts of a tough consumer
environment and our decision to exit our State Line Tack business and
managed inventory and expenses well. We are headed into the holiday season
with a solid business model, the right amount of inventory and a good
assortment on the shelf to delight the customer," said Phil Francis,
chairman and CEO.

Net sales for the third quarter of 2007 were $1.12 billion, compared to
$1.03 billion for the same period in 2006, and comparable store sales --
or sales in stores open at least a year -- grew 1.4 percent in the third
quarter, on top of 6.8 percent in the same period in 2006.

Pet services sales were $111 million during the third quarter of 2007, up
23 percent from the same period last year.

PetSmart opened 31 new stores and closed four locations during the third
quarter of 2007, which compares with 28 new stores and four closures during
the third quarter of 2006.

Share repurchase and dividend payments

During the third quarter of 2007, PetSmart initiated an accelerated share
repurchase program, or ASR, in the amount of $225 million and outstanding
shares were reduced by approximately 6.2 million shares under the program.
The Company expects outstanding shares will be reduced by approximately
775,000 additional shares before the ASR program ends on or before January
31, 2008. After the completion of the ASR, the Company will have $75
million available under its current $300 million share purchase
authorization.

As previously announced, the company paid a dividend of $0.03 per share on
August 10, 2007, to shareholders of record at the close of business on July
27, 2007.

Outlook

PetSmart projects comparable store sales growth in the low-single digits
for the fourth quarter of 2007.

The company estimates earnings of $0.70 to $0.74 per share in the fourth
quarter. For all of 2007, PetSmart expects earnings of $2.05 to $2.09 per
share which includes $0.48 per share from the sale of a portion of its
shares in MMI Holdings, Inc., the third party operator of its in-store
Banfield veterinary hospitals, in the first quarter of 2007. Also included
is a loss of approximately $0.07 per share related to exiting the State
Line Tack business and an estimated $0.08 per share benefit for a 53rd week
of sales in 2007.

Conference call information

PetSmart management has scheduled a teleconference for 4:30 p.m. (EST)
today to discuss results for the third quarter of 2007 as well as the
current outlook. This teleconference will be Web-cast live for all
investors at www.petm.com or www.streetevents.com. The Web-cast will be
available until the company announces results for the fourth quarter of
2007. In addition, you can listen to the call live by dialing 866-804-3546
(within the United States and Canada) or 703-639-1327 (for international
callers), code 1158867. A phone replay will be available through November
30, 2007, at 888-266-2081 in the United States and Canada, or at
703-925-2533 for international callers, code 1158867.

About PetSmart

PetSmart, Inc. is the largest specialty pet retailer of services and
solutions for the lifetime needs of pets. The company operates more than
993 pet stores in the United States and Canada, a growing number of
in-store PetsHotel cat and dog boarding facilities, and is a leading online
provider of pet supplies and pet care information (www.petsmart.com).
PetSmart provides a broad range of competitively priced pet food and pet
products; and offers complete pet training, pet grooming, pet boarding,
doggie day camp and pet adoption services. Since 1994, PetSmart Charities,
Inc., an independent 501(c)(3) non-profit animal welfare organization, has
donated more than $52 million to animal welfare programs and, through its
in-store pet adoption programs, has saved the lives of more than 3 million
pets.

Forward-looking statements

This news release contains forward-looking statements including statements
relating to future revenue growth and goals, our expectations regarding the
exit from our State Line Tack product line, our expectations regarding the
reduction of outstanding shares as a result of our accelerated share
repurchase program and future business opportunities that involve
substantial risks and uncertainties. Such risks and uncertainties include,
but are not limited to, general economic conditions, competitive forces,
our ability to successfully exit the State Line Tack product line and our
ability to manage our operations and growth. Actual results and
developments may therefore differ materially from those described in this
release. For more information about PetSmart, Inc., and risks arising when
investing in PetSmart, Inc., you are directed to the company's most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission.

Statement of utility

PetSmart continues to provide all information required in accordance with
Generally Accepted Accounting Principles (GAAP), but it believes evaluating
its ongoing operating results may be difficult if an investor is limited to
reviewing only GAAP financial measures. Accordingly, PetSmart uses non-GAAP
financial measures of its performance internally to evaluate its ongoing
operations and to allocate resources within the organization.

PetSmart's management does not itself, nor does it suggest investors
should, consider such non-GAAP financial measures in isolation from, or as
a substitute for, financial information prepared in accordance with GAAP.
The non-GAAP financial measures used by PetSmart may not be consistent with
the presentation of similar companies in PetSmart's industry. However,
PetSmart presents such non-GAAP financial measures in reporting its
financial results to provide investors with an additional tool to evaluate
PetSmart's operating results in a manner that focuses on what it believes
to be its ongoing business operations.

PetSmart's management believes it is useful for itself and investors to
review both GAAP information and non-GAAP measures of income before income
tax expense and earnings per share. For the third quarter of 2007, the
non-GAAP measures exclude the effect of net expense from the exit of the
State Line Tack product line. PetSmart's management believes these
measures allow investors to have a better understanding of the overall
performance of PetSmart's business and its ability to perform in subsequent
periods.

Management believes the inclusion of these non-GAAP financial measures
provides consistency and comparability of financial results and better
enables investors to evaluate the ongoing operations and prospects of
PetSmart by providing better comparisons. Whenever PetSmart uses such a
non-GAAP financial measure, it strives where possible to provide a
reconciliation of non-GAAP financial measures to the most closely
applicable GAAP financial measure. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measure.